Matching
Match each of the following transactions and events to the accounting principle applicable to recording and reporting them:
Premises:
An insurance company receives insurance premiums for six future months’ worth of coverage.
Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
A building is for sale at $480,000. An appraisal is given for $450,000.
To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.
Responses:
Revenue recognition principle
Cost principle
Business entity principle
Monetary unit principle
Objectivity principle
Correct Answer:
Premises:
Responses:
An insurance company receives insurance premiums for six future months’ worth of coverage.
Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
A building is for sale at $480,000. An appraisal is given for $450,000.
To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.
Premises:
An insurance company receives insurance premiums for six future months’ worth of coverage.
Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
A building is for sale at $480,000. An appraisal is given for $450,000.
To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.
Responses:
Related Questions
Q76: Beginning assets were $437,600,beginning liabilities were
Q77: Expenses:<br>A)Increase retained earnings.<br>B)Are increases in retained earnings
Q135: The accounting guideline prescribing that financial statement
Q141: A financial statement providing information that helps
Q150: How do revenues and expenses affect net
Q156: What is the purpose of return on
Q208: A company had total equity of
Q210: Data for Madison Realty are as follows:<br>
Q213: The accountant of Magic Video Games
Q228: Planning activities:<br>A)Are the means organizations must use